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Scaling agile from the team to the program to the portfolio level of the enterprise requires the inclusion of additional roles—product manager and system architect; activities—release planning and program retrospectives; and artifacts—portfolio and program visions and backlogs. Practitioners must constantly increase scale and scope, while keeping both the system and the process lean and agile. Dean Leffingwell describes how to accomplish this with the Scaled Agile Framework™, a knowledge-base of proven lean and agile practices for enterprise-class software development. Dean approaches the scaling problem from the perspective of lean thinking and principle of product development flow, illustrating how their core principles help deliver business results at scale, while keeping the system—and the enterprise—responsive. Learn some key principles of lean thinking and product development flow, participate in lightweight exercises designed to reinforce these principles, and leave with an understanding of how to apply them in your organization.
Citation preview
TK Half‐day Tutorial 6/4/2013 1:00 PM
"Scaling Agile Up to the Enterprise and Staying Lean"
Presented by:
Dean Leffingwell Leffingwell, LLC
Brought to you by:
340 Corporate Way, Suite 300, Orange Park, FL 32073 888‐268‐8770 ∙ 904‐278‐0524 ∙ [email protected] ∙ www.sqe.com
Dean Leffingwell Leffingwell, LLC
A renowned methodologist, author, coach, entrepreneur, and executive, Dean Leffingwell founded Requisite, Inc., which was acquired by Rational Software. As a vice president at Rational (now part of IBM), Dean’s responsibilities included the Rational Unified Process. As chief methodologist at Rally Software, he worked with large enterprises to achieve the business benefits of agility by helping to define and implement the tooling and practices needed to support large-scale agile development. Dean is the author of Agile Software Requirements, Scaling Software Agility, and Managing Software Requirements. His most recent project is the Scaled Agile Framework (scaledagileframework.com) which describes a comprehensive system for scaling lean and agile practices to the largest software enterprises.
1
Scaling Agile Up to the Enterprise and Staying Lean:A Workshop
Scaling Agile Up to the Enterprise and Staying Lean:A WorkshopA WorkshopA Workshop
By Dean Leffingwell
1© 2008 - 2013 Leffingwell, LLC.© 2008 - 2013 Leffingwell, LLC. All rights reserved.
Agile Development Conference WestLas Vegas, NevadaJune 2013
Agenda
Scaled Agile Framework Overview
Be Agile
S
Scale to the Program: The Agile Release Train
Scale to the Portfolio: Agile Portfolio Management
Be Lean
2© 2008 - 2013 Leffingwell, LLC.
Scale Leadership
2
About Dean Leffingwell
Founder and CEOProQuo Inc InternetFounder and CEOProQuo Inc Internet
Creator: Scaled Agile FrameworkCreator: Scaled Agile Framework ProQuo, Inc., Internet
identity
Senior VPRational SoftwareResponsible for Rational Unified Process (RUP) & Promulgation of UML
Founder/CEO Requisite, Inc. Makers of RequisitePro
Founder/CEO RELA, Inc.
ProQuo, Inc., Internet identity
Senior VPRational SoftwareResponsible for Rational Unified Process (RUP) & Promulgation of UML
Founder/CEO Requisite, Inc. Makers of RequisitePro
Founder/CEO RELA, Inc.
Agile FrameworkFellow: Lean Systems SocietyAgile Enterprise Coach:To some of the world’s largest enterprises
Chief MethodologistRally Software
Cofounder/AdvisorPing Identity, Roving Planet, Silver Creek Systems Rally
Agile FrameworkFellow: Lean Systems SocietyAgile Enterprise Coach:To some of the world’s largest enterprises
Chief MethodologistRally Software
Cofounder/AdvisorPing Identity, Roving Planet, Silver Creek Systems Rally
3© 2008 - 2013 Leffingwell, LLC.
RELA, Inc. Colorado MEDtechRELA, Inc. Colorado MEDtech
Silver Creek Systems, Rally SoftwareSilver Creek Systems, Rally Software
The Scaled Agile Framework (SAFe)The Scaled Agile Framework is a proven, publicly-facing framework
for applying Lean and Agile practices at enterprise scale
®
Synchronizes alignment, collaboration and deliveryWell defined in booksand now on the webScales successfully to large numbers of practitioners and teams
Core values:
4© 2008 - 2013 Leffingwell, LLC.
AlignmentCode QualityProgram ExecutionTransparency
3
Contributors
Principal Contributors
AssociateMethodologist
Drew Jemilo Colin O’Neill
Alex Yakyma
5© 2008 - 2013 Leffingwell, LLC.
Alan Shalloway
CommunityEnterpriseAdoptersAcknowledgements
6© 2008 - 2013 Leffingwell, LLC.
4
Agenda
Scaled Agile Framework Overview
Be Agile
S
Scale to the Program: The Agile Release Train
Scale to the Portfolio: Agile Portfolio Management
Be Lean
7© 2008 - 2013 Leffingwell, LLC.
Scale Leadership
Lean Thinking Provides the Tools We Need
Respect for People
Product Development
FlowKaizen
8© 2008 - 2013 Leffingwell, LLC.
5
Goal: Speed, Value, Quality
All we are doing is looking at the timeline, from the moment the customer gives usAll we are doing is looking at the timeline, from the moment the customer gives us
THE GOALSustainably shortest lead time
THE GOALSustainably shortest lead time
from the moment the customer gives us an order to the point where we collect the cash. And we are reducing the time line by reducing the non-value added wastes.
Taiichi Ohno
We need to figure out a way to deliver software so fast that our customers don’t have time to change their minds.
from the moment the customer gives us an order to the point where we collect the cash. And we are reducing the time line by reducing the non-value added wastes.
Taiichi Ohno
We need to figure out a way to deliver software so fast that our customers don’t have time to change their minds.
Respect for People
Product Development
FlowKaizen
9© 2008 - 2013 Leffingwell, LLC.
Sustainably shortest lead timeBest quality and value to people and societyMost customer delight, lowest cost, high morale, safety
Sustainably shortest lead timeBest quality and value to people and societyMost customer delight, lowest cost, high morale, safety
Mary Poppendieck
Most software problems will exhibit themselves as a delay.
Alan Shalloway
Mary Poppendieck
Most software problems will exhibit themselves as a delay.
Alan Shalloway
Respect for People
Your customer is whoever consumes your workYour customer is whoever consumes your work
Develop individuals and teams; Develop individuals and teams;
y
Don’t trouble your customers
Don't force people to do wasteful work
Don't overload them
Don't make them wait
Don't impose wishful thinking
y
Don’t trouble your customers
Don't force people to do wasteful work
Don't overload them
Don't make them wait
Don't impose wishful thinking
Respect for People
Product Development
FlowKaizen
PEOPLE
10© 2008 - 2013 Leffingwell, LLC.
they build productsEmpower teams to continuously improveBuild partnerships based on trust and mutual respect
they build productsEmpower teams to continuously improveBuild partnerships based on trust and mutual respect
p g
Equip them with problem-solving tools
Form long-term relationships based on trust
p g
Equip them with problem-solving tools
Form long-term relationships based on trust
6
Kaizen
Steady, small improvements
C id ll d t th i l t
Steady, small improvements
C id ll d t th i l t
BECOME RELENTLESS IN:Reflection
BECOME RELENTLESS IN:Reflection
Consider all data, then implement change rapidly
Reflect at key milestones to identify and improve shortcomings
Use tools like retrospectives, root cause analysis, and value stream mapping
P t t th k l d b b
Consider all data, then implement change rapidly
Reflect at key milestones to identify and improve shortcomings
Use tools like retrospectives, root cause analysis, and value stream mapping
P t t th k l d b b
Respect for People
Product Development
FlowKaizen
11© 2008 - 2013 Leffingwell, LLC.
ReflectionContinuous improvement as an entreprise value
ReflectionContinuous improvement as an entreprise value
Protect the knowledge base by developing stable personnel and careful succession systems
Protect the knowledge base by developing stable personnel and careful succession systems
Foundation: Leadership
Develop people. They will develop solutionsDevelop people. They will develop solutionssolutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success
solutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success
Respect for People
Product Development
FlowKaizen
Lean-Thinking Manager-Teachers
M t i t i d i
12© 2008 - 2013 Leffingwell, LLC.
Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes
Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes
Management is trained in lean thinking Bases decisions on this long term philosophy
7
Principles of Product Development Flow
1. Take an economic view
2
1. Take an economic view
22. Actively manage queues
3. Understand and exploit variability
4. Reduce batch sizes
5. Apply WIP constraints
6. Control flow under uncertainty:
2. Actively manage queues
3. Understand and exploit variability
4. Reduce batch sizes
5. Apply WIP constraints
6. Control flow under uncertainty:
Respect for People
Product Development
FlowKaizen
13© 2008 - 2013 Leffingwell, LLC.
cadence and synchronization
7. Get feedback as fast as possible
8. Decentralize control
cadence and synchronization
7. Get feedback as fast as possible
8. Decentralize controlReinertsen, Don. Principles of Product Development Flow
PPDF #1 – Take an Economic View
Develop an economic framework for
Understand the full value chain
Base your decisions on economics
decision makingEmpower local decision makingDo not consider money already spent
Sequence jobs for maximum benefitIf you only quantify one thing, quantify the cost of delay
C t f
14© 2008 - 2013 Leffingwell, LLC.
Cost of Delay High Weight First
BC
A
Reinertsen, Don. Principles of Product Development Flow
8
PPDF #2 – Actively Manage Queues
Email from a client service organization: “Thank you for contacting us. We are experiencing increased volumes and apologize in advance for the delay. Our goal is to contact you within…..
Understand Little’s Law
Wait time = queue length/processing rateControl queue sizes to control wait timesOperating at high levels of
15© 2008 - 2013 Leffingwell, LLC.
Operating at high levels of utilization increases variabilityMeasure cycle time and queue length with cumulativeflow diagrams
Reinertsen, Don. Principles of Product Development Flow
PPDF #3 – Understand and Exploit Variability
Risk-taking is central to value creation in product development
We cannot add value without ddi i bilitadding variability
Development variability can increase economic valueBuffers trade money and time for variability reductionSchedule buffers convert uncertain earliness to certain latenessManaging variability
E P I C
E P I CVA
LU
E
16© 2008 - 2013 Leffingwell, LLC.
Managing variability– Planning and requirements
forecasting are exponentially easier in short-term horizons
– Research spikes, incremental value delivery and fast feedback are critical
By investing relatively more in beneficial areas and abandoning wasteful ones, the enterprise maximizes economic benefit
By investing relatively more in beneficial areas and abandoning wasteful ones, the enterprise maximizes economic benefit
Reinertsen, Don. Principles of Product Development Flow
9
PPDF #4 – Reduce Batch Size
Small batches go through the system faster, with lower variability
L b t h i i i bilitL b t h i i i bilit R d i b t h iR d i b t h iLarge batch sizes increase variabilityHigh utilization increases variabilitySevere project slippage is the most likely result
Large batch sizes increase variabilityHigh utilization increases variabilitySevere project slippage is the most likely result
Reducing batch size – Reduces cycle time; faster feedback– Decreases variability and risk
Most important batch is the transport (handoff) batch Proximity (co-location) enables small batch sizesGood infrastructure enables small batches (build and test automation,
Reducing batch size – Reduces cycle time; faster feedback– Decreases variability and risk
Most important batch is the transport (handoff) batch Proximity (co-location) enables small batch sizesGood infrastructure enables small batches (build and test automation,
17© 2008 - 2013 Leffingwell, LLC.
( ,continuous integration, etc) Loose architectural coupling enables small batches
( ,continuous integration, etc) Loose architectural coupling enables small batches
Slippage in projects rises exponentially with duration
Fig. Source: Poppendieck. Implementing Lean Software Development Reinertsen, Don. Principles of Product Development Flow
Exercise – Large Batch Push
Batch Push
1. Create groups of five with ten1. Create groups of five with ten pennies per group. One person is the time keeper. The remaining four people process the pennies.
2. Person by person, flip all pennies one at a time, recording your own results (heads or tails)
3 P ll i t th ti
18© 2008 - 2013 Leffingwell, LLC.
3. Pass all pennies at the same time to the next person
4. The time keeper records the time from the start of the first flip to the completion of the last flip Timebox:
5 minutes
10
Exercise – Small Batch Pull
Small Batch Pull
1 Same four person process1. Same four person process
2. Flip each penny one at a time and record your own results
3. Pass each penny as flipped
4. The time keeper records the time from the start of the first flip to the completion of the last flip
19© 2008 - 2013 Leffingwell, LLC.
completion of the last flip
Timebox:5 minutes
Discussion – Rework
A defect is discovered on the third penny at station four. All pennies have the defect.The defect was induced at station three, and requires 10 sec. of rework at station threeH h k i i d i h ll?
Timebox:5 minutes
How much rework is required in push vs. pull?
Push
20© 2008 - 2013 Leffingwell, LLC.
1 2 3 4
Pull
11
Finding Economic Batch Size
Optimum batch size is an example of a “U-Curve optimization”
Higher transaction
Optimum Batch Size
Total Cost
T tiHolding
Cos
t
Higher transaction costs shift optimum batch size higher
Higher holding costs shift it lower
Batch size
21© 2008 - 2013 Leffingwell, LLC.
Transaction Cost
Holding Cost
Items per Batch
reduction probably saves 2X what you think!
Agenda
Scaled Agile Framework Overview
Be Agile
S
Scale to the Program: The Agile Release Train
Scale to the Portfolio: Agile Portfolio Management
Be Lean
22© 2008 - 2013 Leffingwell, LLC.
Scale Leadership
12
Agile Accelerates Value Delivery
Documents Documents Unverified Code Software
23© 2008 - 2013 Leffingwell, LLC.
Accelerating Value DeliveryEarly value delivery drives first to market, fast feedback, and
profitability
Valu
e D
eliv
ery
24© 2008 - 2013 Leffingwell, LLC.
Time
V
13
Exercise – Accelerating Value Delivery
Project A Project B Project C
Scenario 1 – Serial Delivery
Time
Scenario 2 –Parallel Delivery
Project A
Your team has three projects. Each will take the entire team one month and delivers one unit of value.
Plot value delivery curves by doing the projects serially and in parallel (simultaneously)
j
Project B
Project C
Time
25© 2008 - 2013 Leffingwell, LLC.
y p ( y)
– Assume 20% task switching overhead for each team member in Scenario 2
Hint: Plot the serial case firstTimebox:10 minutesTime
Valu
e
Makes Money Faster
VA
LUE
DE
LIV
ER
Y
26© 2008 - 2013 Leffingwell, LLC.
TIME
14
Reduces Risk
Waterfall
DeadlineR
isk
A il
?
27© 2008 - 2013 Leffingwell, LLC.
Agile
Time
Avoids the Death March and Burnout
Deadline
Pres
sure
Peak performance achieved and maintained indefinitely at a sustainable pace
28© 2008 - 2013 Leffingwell, LLC.
Time
15
Delivers Better Fit for Purpose
agile(adaptive) plan, result
Measure ofwaterfall customerdissatisfaction
29© 2008 - 2013 Leffingwell, LLC.
Time
waterfall plan, result
Agile Teams
Empowered, self-organizing, self-managing teams with developers, testers, content authorityTeams deliver valuable, fully tested software increments every two weekstwo weeksTeams apply Scrum (and Kanban) project management practices and XP technical practicesTeams operate under program vision, system, architecture and UX guidance
30© 2008 - 2013 Leffingwell, LLC.
16
Agile Teams are Lean
SAFe Scrum Scrum is Founded on LeanCross functional teamsTime boxes to limit WIPSprints provide fast feedbackEmpowered local decision
Continuous Integration
User Stories
XP Inspired Technical Practices
Empowered, local decision makingColocation reduces batch size and communication overhead
XP. Quintessentially Lean?TDD and ATDD limit waste and scrap
31© 2008 - 2013 Leffingwell, LLC.
Collective Ownership
Test‐First:TDDATDD
Emergent Design
Scalability Required
Agile Analysis
g
XP Inspired
Small batch sizesFast feedback:
Test firstContinuous integrationTest automation
Collective ownership
PPDF #5 – Apply WIP Constraints
WIP Constraints force capacity matching and increase flow
Apply WIP constraints Force capacity matchingAccelerate delivery
Timebox Prevent uncontrolled expansion of workMake waiting times predictable
Purge lower value projectswhen WIP is too high
Increase efficiency and throughput of remaining work
Constrain local WIP pools Constrains global WIP pools
32© 2008 - 2013 Leffingwell, LLC.
It is far easier to start a project than it is to finish one.It is far easier to start a project than it is to finish one.
Make WIP continuously visible
1) Understand 2) take action
Reinertsen, Don. Principles of Product Development Flow
17
Exercise – WIP Constraints Today
33© 2008 - 2013 Leffingwell, LLC.
Timebox:5 minutes
1. Above is a software teams visible information radiator2. How are they doing? How do you know that?3. What would be the effect of three story WIP constraint on
development and test?
Agenda
Scaled Agile Framework Overview
Be Agile
S
Scale to the Program: The Agile Release Train
Scale to the Portfolio: Agile Portfolio Management
Be Lean
34© 2008 - 2013 Leffingwell, LLC.
Scale Leadership
18
Scale to the Program LevelAn empowered, self-organizing, self-managing team-of-agile teams committed for continuous value delivery
Cadence based, synchronized
Aligned to a common missiong
35© 2008 - 2013 Leffingwell, LLC.
Fast feedback: fully tested, system-level solutions every 8-12 weeks
Common sprint lengths and normalized velocity
Face-to-face planning cadence provides development collaboration, alignment, synchronization, evaluation
PPDF #6 – Control Flow Under Uncertainty
Transforms unpredictable events into predictable eventsTransforms unpredictable events into predictable events
Synchronization causes multiple events to happen at the same timeSynchronization causes multiple events to happen at the same timep
Requires scope or capacity marginMakes waiting times predictable
– If you can’t predict delivery, existing programs become “feature magnets”
Manages load: When load and utilization become too high, you will see a sudden and catastrophic
pRequires scope or capacity marginMakes waiting times predictable
– If you can’t predict delivery, existing programs become “feature magnets”
Manages load: When load and utilization become too high, you will see a sudden and catastrophic
ppScheduled, periodic resynchronization limits variance to a single time intervalRegular, system wide integration provides higher fidelity tests and objective assessmentSynch events facilitate cross
ppScheduled, periodic resynchronization limits variance to a single time intervalRegular, system wide integration provides higher fidelity tests and objective assessmentSynch events facilitate cross
36© 2008 - 2013 Leffingwell, LLC.
preduction in throughput!
preduction in throughput! functional tradeoffs of resources,
scopefunctional tradeoffs of resources, scope
Reinertsen, Don. Principles of Product Development Flow
19
Control Variability with Planning Cadence
Cadence-based planning timeboxes limit variability to a single interval
MaxMaxDeviation
(3X)
Max Deviation
Cadence-based
Asynchronous planning
37© 2008 - 2013 Leffingwell, LLC.
Time
based planning
The Agile Release Train
Align teams to a common vision
The ART is the primary mechanism for accelerated value delivery at scale
Manage interdependencies amongst teams
Provide continuous flow
Common training, common language, common schedule
Self-organizing, self-managing
38© 2008 - 2013 Leffingwell, LLC.
Repeat until further notice. Project chartering not required.
20
The Agile Release Train
Organized around enterprise value streams
Delivers Potentially Shippable Increments (PSI) every eight to twelve weeks
39© 2008 - 2013 Leffingwell, LLC.
Rules of the Release Train
PSI dates for the solution are fixedEstimating, planning and asset integration coordinated with two-week sprint length, aligned cadence and normalized velocityvelocityFortnightly (every two weeks) system integration and system demo milestones are enforcedAll “cargo” (code, docs, supplemental) goes on the trainThe system always runs
40© 2008 - 2013 Leffingwell, LLC.
21
Every Team Must Be on the Train
Waterfall Doesn’t Iterate
Planned releaseWhat do we
integrate here?
Waterfall Doesn t Iterate
delayMRD PRD SRS Dev Drop 1
to QADrop 2 to QATest
drop 1
Release docs
Test drop 2
Ports, certs
Actual release
Integration can’t work here
PSI
41© 2008 - 2013 Leffingwell, LLC.
Agile Iterates
Iterate Iterate Iterate
Release docs
Ports, certs
Iterate Iterate Iterate
Cadence Alone is Not Enough
Planned system release date
…the system is not sprinting ....time spent thinking you are on track I t ton track……. Integrate
and slip!System
External Release
External Release
PSI
Iterate Iterate Iterate Iterate Iterate Iterate
PSI
Iterate Iterate Iterate Iterate Iterate Iterate
Release docs
Port and certs
Port and certs
Release docs
42© 2008 - 2013 Leffingwell, LLC.
External ReleasePSI
Iterate Iterate Iterate Iterate
Release docs
22
Synchronize to Assure Delivery
PSI Second System PSI or Release
System Sys 1 Sys 2 Sys 3 Sys 4 Sys 5 Sys 6 Sys 7 Sys 8
Iterate Iterate Iterate Iterate Iterate Iterate
Iterate Iterate Iterate Iterate Iterate Iterate
yIterations
External Release
External Release
Release docs
Ports certs
Release Docs
PSI
PSI
Continuous Integration
Continuous IntegrationSystem
Team
Dev Teams
43© 2008 - 2013 Leffingwell, LLC.
Iterate Iterate Iterate Iterate Iterate Iterate
External ReleaseRelease Docs
Ports certs
Ports certs
PSIContinuous Integration
Develop on Cadence. Deliver on Demand.
Deliver on Demand
Scenario A: Release less frequently than cadence
Customer Upgrade
Docs and Docs and QA-Release to Market-
Major Release
Docs and Docs and
Feature Release
Major Release
44© 2008 - 2013 Leffingwell, LLC.
Develop on Cadence
Customer previewCustomer preview certscerts Governance Firewallcertscerts
PSIPSI PSIPSI PSIPSI PSIPSI PSIPSIPSIPSI
23
Release Whenever You LikeScenario B: Release on cadence
Scenario C: Release more frequently than cadence
45© 2008 - 2013 Leffingwell, LLC.
PPDF #1 – Take an Economic View
Develop an economic framework for
Understand the full value chain
Base your decisions on economics
decision makingEmpower local decision makingDo not consider money already spent
Sequence jobs for maximum benefitIf you only quantify one thing, quantify the cost of delay
C t f
46© 2008 - 2013 Leffingwell, LLC.
Cost of Delay High Weight First
BC
A
Reinertsen, Don. Principles of Product Development Flow
24
Features and the Program Backlog
Features are identified, prioritized, estimated, and maintained in the Program Backlog
The program backlog is the authority for what
Features are services that fulfill user needs
The program backlog is the authority for what gets built by each train
47© 2008 - 2013 Leffingwell, LLC.
PPDF #1 – Take an Economic View: Prioritizing Backlog for Optimal ROI
To prioritize based on lean
In a flow system, job sequencing is the key to economic outcomes
To prioritize based on lean economics, we need to know two things:
1. What is the Cost of Delay (CoD) in delivering value
2. What is the cost to implement
48© 2008 - 2013 Leffingwell, LLC.
the value thing
Principle of Product Development Flow E3: If you only quantify one thing, quantify the Cost of Delay. Reinertsen 2009Principle of Product Development Flow E3: If you only quantify one thing, quantify the Cost of Delay. Reinertsen 2009
25
CoD Economics: Shortest Job First
When the cost of delay is equal, do the Shortest Job FirstWhen the cost of delay is equal, do the Shortest Job First
Cost of Delay
A
Shortest Job First
C
A
B
Longest Job FirstCost of Delay
A 1 3
B 3 3
Time
1 x 3 =
(1 + 3) x 3 =
49© 2008 - 2013 Leffingwell, LLC.
From “The Principles of Product Development Flow,” by Donald G. Reinertsen. Celeritas Publishing: 2009. Copyright 2009, Donald G. Reinertsen
Time
39
30
Delay Cost
B 3 3
C 10 3C
B
A
10 x 3 =
(10 + 3) x 3 =
CoD Economics: High Delay Cost First
When the effort is equal, do the high CoD job firstWhen the effort is equal, do the high CoD job first
High Delay Cost First
A
Cost of Delay
Low Delay Cost First
A 3 10
B 3 3
Time
BC
BC
Cost of Delay
3 x 3 =
(3 + 3) x 1 = 6
3 x 3 =
50© 2008 - 2013 Leffingwell, LLC.
From “The Principles of Product Development Flow,” by Donald G. Reinertsen. Celeritas Publishing: 2009. Copyright 2009, Donald G. Reinertsen
TimeDelay Cost
B 3 3
C 3 160 A(3 + 3) x 10 =
26
CoD Economics: Weighted Shortest Job First
When nothing is equal, do the Weighted Shortest Job First!
WSJF = Cost of Delay / Effort
When nothing is equal, do the Weighted Shortest Job First!
WSJF = Cost of Delay / Effort
High Delay Cost FirstCost of Delay
yy
Low Delay Cost First
Time
C
3
BC
A
A 1 10 10
B 3 3 1
Cost of Delay
1 x 3 =
(1 + 3) x 1 = 4
51© 2008 - 2013 Leffingwell, LLC.
From “The Principles of Product Development Flow,” by Donald G. Reinertsen. Celeritas Publishing: 2009. Copyright 2009, Donald G. Reinertsen
TimeDelay Cost
B 3 3 1
C 10 1 0.1
130 A
B10 x 3 =
(10 + 3) x 10 =
Cost of Delay ComponentsRelative value in the eyes of the customer
“They prefer this over that”.
Revenue impact on the business?
Penalty potential on the business?
User/ Business
ValuePenalty potential on the business?
How User Value Decays Over Time
Is there a fixed deadline?
Will they wait for us or move to another solution?
What is the effect on customer satisfaction now?
Time Value
52© 2008 - 2013 Leffingwell, LLC.
What else does this do for our business?
Reduce the risk of this or future delivery?
Is there value in the information we will receive?
Enable new business opportunities?
Risk Reduction/ Opportunity Enablement
(RR|OE)
27
WSJF Prioritization MatrixWeighted Shortest Job First (WSJF) provides
the greatest economic benefit
WSJF =User Value + Time Value + RR|OE Value
Job Size
53© 2008 - 2013 Leffingwell, LLC.
Scale for each parameter: 1, 2, 3, 5, 8,13, 21Do one column at a time, start by picking the smallest item and giving it a “1”. (There must be at least one “1” in each column!)Highest WSJF is highest priority
Exercise: Prioritizing Program Backlog
As Lean Thinkers
Take 5 minutes and identify your top 10 personal backlog items
Then using the priorwe can prioritize our work so that we can achieve the best economic outcomes for our stakeholders
Then, using the prior page, prioritize three of your personal backlog items using WSJF
Notes: 1. Estimate each backlog item one column ata time
54© 2008 - 2013 Leffingwell, LLC.
a time
2. There must be a “1” in each column:
Timebox:15 minutes
28
PPDF #2 Control Queues for Fast Response
Long queues, plus high utilization = unpredictability!
Little’s Law: the average wait time l th l thequals the average queue length
divided by the average processing timeLong queues. Long waits. Slow deliveryBacklogs are a form of queue(If items are committed, then it is a queue)Plus: Operating at high levels of utilization increases unpredictability
55© 2008 - 2013 Leffingwell, LLC.
For fast, reliable service:Keep the program backlogs short and uncommittedLimit WIP to keep planned utilizations at 80% or below
Reinertsen, Principles of Product Development Flow, 2009.
Agenda
Scaled Agile Framework Overview
Be Agile
S
Scale to the Program: The Agile Release Train
Scale to the Portfolio: Agile Portfolio Management
Be Lean
56© 2008 - 2013 Leffingwell, LLC.
Scale Leadership
29
Scale to the Portfolio
Lean principles emphasize sustainably fastest value delivery
Centralize strategy. Decentralize execution.
Local decision making
Portfolio vision guides investments in solutions and the enterprise
57© 2008 - 2013 Leffingwell, LLC.
Portfolio vision guides investments in solutions and the enterprise architecture needed to support customer and business needs
Business epic kanban system provides visibility and work-in-process limits to support continuous product development flow
Objective metrics support governance and kaizen
Lean-Agile Program Portfolio Management
SAFe patterns provide a transformation roadmap
#1 Centralized control Decentralized decision-making#2 Project overload Continuous value flow#3 Detailed project plans Lightweight business cases#4 Centralized annual planning Decentralized, rolling-wave planning#5 Work Breakdown Structure Agile estimating and planning#6 Project-based funding Agile Release Trains
58© 2008 - 2013 Leffingwell, LLC.
#7 Projects and PMBOK Self-managing teams and programs
#8 Waterfall milestones Objective, fact-based measures and milestones
Legacy PPM Agile PPM
30
#8 – Decentralize Control
Centralize control for decisions that
– Are infrequent– Can be applied globally; have significant economies of
scale– Age well
Decentralize control for all others
– Inefficiency of decentralization costs less than the value of faster response time
– Local decisions have better local information
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Control the economic logic behind a decision, not the entire decision
– Set the framework, empower others to make the decisions
Reinertsen, Don. Principles of Product Development Flow
Decentralize Control
Central Decision MakingCentral Decision Making
Kanban
Market Feedback
tfolio
Bac
klog
Strategy
Investment Themes
Prog
ram
Back
logBa
cklog
Local Decision Making
One theme drives cross cutting Epics
Themes Drive Release Train
Port
Value Stream feedback
Value Stream feedback
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Prog
ram
BPr
ogra
m Ba
cklog
Release Train Operating Budgets
Value Stream feedback
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Agile Program Portfolio Management
Agile Program Portfolio Management fulfills key responsibilities
Decentralized decision-making
Agile estimating and planning
Continuous value flowLightweight business casesDecentralized, rolling-wave planning
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Agile Release TrainsAgile Program Management
Objective, fact-based measures and milestones
Agenda
Scaled Agile Framework Overview
Be Agile
S
Scale to the Program: The Agile Release Train
Scale to the Portfolio: Agile Portfolio Management
Be Lean
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Scale Leadership
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Foundation: Leadership
Develop people. They will develop solutionsDevelop people. They will develop solutionssolutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success
solutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success
Respect for People
Product Development
FlowKaizen
Lean-Thinking Manager-Teachers
M t i t i d i
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Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes
Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes
Management is trained in lean thinking Bases decisions on this long term philosophy
On “Managing” Knowledge Workers“Workers are knowledge workers if they are more knowledgeable
about the work they perform than their bosses.”
Workers themselves are best placed Workers themselves are best placed pto make decisions about how to perform their work and how to modify processes to improve how their work is performed. To effectively lead knowledge workers, the workers must be heard and respectedKnowledge workers have to manage
pto make decisions about how to perform their work and how to modify processes to improve how their work is performed. To effectively lead knowledge workers, the workers must be heard and respectedKnowledge workers have to manage
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Knowledge workers have to manage themselves. They have to have autonomy.Continuing innovation has to be part of the work, the task and the responsibility of knowledge workers.
Knowledge workers have to manage themselves. They have to have autonomy.Continuing innovation has to be part of the work, the task and the responsibility of knowledge workers.
Peter Drucker
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Leadership Styles
Leader as Expert
The effectiveness of your workers is determined in large part by your personal leadership style
Leader as Expert
Leader as Conductor
Leader as Developer
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Leader as Developer of People
Change in orientation
A post-heroic, lean leadership style
– Direct report-centric, rather than manager-centric
Behaviors– Creates a team jointly responsible for
success
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– Asks “How can each problem be solved in a way that further develops my direct reports’ commitment and capabilities?”
– Allows leader to spend more time managing laterally and upward
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Drive: Surprising Truth About What Motivates Us
MMPP
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Video Source: http://www.youtube.com/watch?v=u6XAPnuFjJc&feature=youtu.be
Book: Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink. 2011 Timebox:
15 minutes
Another Perspective on Leadership
Quietly read the article “Leadership as a Task, Rather than an IdentityUnderline any sentences that you find interesting or thought provokingBe ready to share your thoughts
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Source: Harvard Business Review article "Leadership in Online Labs” Byron Reeves, Thomas W. Malone, and Tony O’Driscoll. 2008.Source: Harvard Business Review article "Leadership in Online Labs” Byron Reeves, Thomas W. Malone, and Tony O’Driscoll. 2008.
Timebox:10 minutes
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Excerpts from a Harvard Business Review article Leaderships Online Labs- May 2008 by Byron Reeves, Thomas W. Malone, and Tony O’Driscoll
"The organizational and strategic challenges facing players who serve as [online] game leaders are familiar ones: recruiting, assessing, motivating, rewarding, and retaining talented and culturally diverse team members; identifying and capitalizing on the organization’s competitive advantage; analyzing multiple streams of constantly changing and often incomplete data in order to make quick decisions that have wide-ranging and sometimes long-lasting effects. But these management challenges are heightened in online games because an organization must be built and sustained with a volunteer workforce in a fluid and digitally mediated environment.”g y
"Put simply, online games can be informal but realistic simulators for contemporary leadership training… Perhaps the most striking aspect of leadership in online games is the way in which leaders naturally switch roles, directing others one minute and taking orders the next. Put another way, leadership in games is a task, not an identity—a state that a player enters and exits rather than a personal trait that emerges and thereafter defines the individual.”
"Don’t get us wrong: Leadership stars do exist in games. Some guild leaders have successfully led 100-strong teams for a year or more—an eternity in this new medium. As in business, players with exceptional relationship skills are particularly good at forming effective teams, delegating responsibility,
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p p p y g g , g g p y,and keeping groups motivated and moving forward. However, games do not foster the expectation that leadership roles last forever. Someone leading a guild today may grow weary of the stress and hand over the reins after a month or two. The leader of a raid knows that someone else’s skills and experience may be better suited to commanding the next effort. Even during the frenzied activity of a raid, the leadership role can be transferred as conditions change or because the person in charge doesn’t happen to be around when the need for a decision arises. Notably, choices about who will lead and who will follow are often made organically by the group—frequently because someone volunteers to take over—not by some higher authority.”
"Nevertheless, our findings reinforced our basic premise that leadership in online games offers a sneak preview of tomorrow’s business world. In broad terms, that environment can be expected to feature the fluid workforces, the self-organized and collaborative work activities, and the decentralized, nonhierarchical leadership that typify games. In more specific terms, we found several distinctive characteristics of leadership in online games that suggest some of the qualities tomorrow’s business leaders will need in order to achieve success.”
"Most writing about leader selection and development focuses on people’s backgrounds and natural
Excerpts from Leaderships Online Labs (cont)
g p p p gtalents. Whether leadership ability is inborn or acquired through training, the assumption is that expertise resides within the individual. Our study provided us with an arrestingly different view: Perhaps the right environment is what really matters, whoever the leader happens to be. This concept, which as far as we know is absent from the academic and professional literature about leadership, wasn’t something that we set out to prove. The notion arose from the experienced gamers on our research team, who were puzzled by our initial preoccupation with the individual qualities of game leaders. “If you want better leadership,” they asked, “why not change the game instead of trying to change the leaders?”
So we began to focus on identifying distinctive aspects of online game environments that could improve leadership in business and other real-world settings. We pinpointed at least two properties of games that
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p g p p p p gwe believe facilitate and enhance leadership: nonmonetary incentives rooted in a virtual game economy; and hyper-transparency of a wide range of information, including data about individual players’ capabilities and performance. These two elements—along with the rich mix of text, audio, and visual communication in games—make it easier for leaders to be effective. Players know exactly what they should be doing and, to a large degree, have the tools they need to manage themselves. This suggests that organizations can benefit by selectively “gamifying” their work environments in order to improve the quality of leadership—not in the future but right away."
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Inspire, Inform, EducateInspire: Expect and challenge management to lead, not follow the
Lean|Agile Transformation
Lean|Agile leadership trainings and workshopsScaled Agile Framework Training and CertificationLunch and learns:• Principles of Product
Lean|Agile leadership trainings and workshopsScaled Agile Framework Training and CertificationLunch and learns:• Principles of Product
Form and support a Lean|Agile working groupInclude managementCreate and work the transformation backlogImplement effective
Form and support a Lean|Agile working groupInclude managementCreate and work the transformation backlogImplement effective
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• Principles of Product Development Flow, Reinertsen
• Agile Software Requirements,Leffingwell
• Lean Software Development, Poppendieck
• Principles of Product Development Flow, Reinertsen
• Agile Software Requirements,Leffingwell
• Lean Software Development, Poppendieck
Implement effective, continuous communication plan
Implement effective, continuous communication plan
Conclusion
The foundation of Lean is leadershipis leadership
The foundation of SAFeis you
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Next Steps
Browse the framework at scaledagileframework.comRead Agile Software gRequirements
Get training, certification, courseware and implementation tools through Scaled Agile Academy
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Start/accelerate your Lean|Agile transformation nowImplement your first Agile Release Train